KML said that, together with KCC, it had entered into a settlement agreement with Gécamines (among others) “to terminate legal proceedings brought by Gécamines in the DRC courts, and resolve KCC’s previously disclosed capital deficiency”.

Glencore said KML will issue US$5.6B in stock that will be used to retire the high-interest debt. The company had been saddled with US$9.2B in debt, with the majority owed to Glencore.

The Swiss mining giant said that the key highlights of Katanga’s settlement agreement with Gécamines are as follows:

Conversion of US$5.6B of KCC’s total debt of approximately US$9B into new KCC equity, such that, with retroactive effect as at 1 January 2018, KCC has US$3.45B of debt to KML Group, bearing interest at the lower of US$ Libor 6 month + 3% and 6% per annum.

Katanga and Gécamines’ shareholdings in KCC remain unchanged at 75% and 25%, respectively.

A one-time payment to Gécamines of US$150M relating to historical commercial disputes.

Certain amendments to the dividend payment and free cash flow provisions of KCC including an amortisation schedule for the repayment of the residual debt.

Payment of approx. US$41M to Gécamines in relation to outstanding expenses incurred as part of an exploration program.

Waiver by KCC of its entitlement (or financial equivalent) to replacement reserves and associated incurring of drilling costs on Gécamines’ behalf, amounting to US$285M and US$57M, respectively.